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blagie [28]
3 years ago
6

Should any of these ratios or the change in a ratio warrant concern for the managers of Tyler Toys or the​ shareholders? ​(Selec

t the best​ response.) A. The company has a very good turnover of assets and collects its receivables​ quickly; thus there are no real concerns from these ratios. B. The company has a very good turnover of assets and collects its receivables​ quickly; thus there are major concerns from these ratios. C. The company has a very poor turnover of assets and collects its receivables​ quickly; thus there are some concerns from these ratios. D. The company has a very good turnover of assets but collects its receivables​ slowly; thus there are some real concerns from these ratios.
Business
1 answer:
Murrr4er [49]3 years ago
4 0

Answer:

<u>C. The company has a very poor turnover of assets and collects its receivables​ quickly; thus there are some concerns from these ratios. D</u>

<u>Explanation:</u>

Let's be mindful that turnover here refers to <em>revenue</em>, while receivables​  refer to<em> amounts owed to the company</em>.  So, If the company has a very poor turnover of assets it means it isn't making much revenue, and it is collecting its receivables​ quickly implying there are some concerns (imbalances) from these ratios.

Therefore, the managers of Tyler Toys or the​ shareholders need to work out a solution.

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